An Auditor Selected an Inventory Item on the Warehouse Floor,test

question 44

Multiple Choice

An auditor selected an inventory item on the warehouse floor,test counted it,and traced the count to the final inventory compilation.The auditor most likely was testing the PCAOB assertion of

• A)Existence.
• B)Valuation.
• C)Completeness.
• D)Rights and obligations.

Identify the view that best represents the important aspects of an object.

Understand technical abbreviations and symbols used in technical drawings.

Grasp the concept of auxiliary views and their purpose in showing additional details.

Comprehend the minimum number of views required to completely represent an object.

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Definitions:

Executory Costs

Expenses associated with executing a contract, including maintenance and insurance, but excluding depreciation.

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled, especially regarding the quality, durability, or performance of a product or service.

Failure to Renew

The situation occurring when a contract, such as a lease or licensing agreement, is not extended or renewed upon its expiration.

Operating Lease

A lease agreement where the lessor retains ownership, and the asset is returned after the lease term ends.